THE INDIAN SPOON LIMITED

Executive Summary

The Indian Spoon Limited is a newly established micro-entity with modest net assets but negative working capital, indicating short-term liquidity risk. While the controlling director provides clear governance, the company’s early stage and cash flow position necessitate conditional credit approval with close monitoring of liquidity and trading performance. Careful credit limits and repayment terms are recommended until financial stability improves.

THE INDIAN SPOON LIMITED - Analysis Report

Company Number: 14501277

Analysis Date: 2025-07-29 12:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   The Indian Spoon Limited is a micro-entity incorporated recently (Nov 2022) and has filed its first set of accounts for the year ending Nov 2023. The company shows positive net assets (£8,272) but exhibits a working capital deficit (net current assets: -£14,096), indicating current liabilities exceed current assets. Given the early stage of the business and the negative short-term liquidity position, credit facilities could be considered but with conditions such as limits on exposure, short repayment terms, and possibly personal guarantees from the controlling director. The director’s full ownership and control is a positive from a governance standpoint, but the company’s ability to meet short-term obligations requires close monitoring.

2. Financial Strength:
   The statement of financial position shows fixed assets of £22,368 and current assets of £40,712, mainly likely cash and receivables or inventory, against current liabilities of £54,808. The net asset base is modest at £8,272 with no long-term liabilities disclosed. The balance sheet reflects a very early-stage business with limited financial buffer. The negative net current assets suggest some pressure on liquidity despite positive equity. The lack of audit exemption and micro-entity reporting indicates limited financial detail, restricting deeper assessment.

3. Cash Flow Assessment:
   The negative working capital position (-£14,096) highlights potential cash flow challenges in meeting near-term liabilities. No income statement or cash flow statement is filed, so cash generation capability cannot be directly assessed. The company employs one person, likely the director, which keeps overhead low. However, the current liabilities exceeding current assets is a risk factor, suggesting the company may rely on timely cash inflows or external funding to meet obligations. This risk is typical for start-ups but warrants cautious credit terms.

4. Monitoring Points:

• Improvement in net current assets and liquidity position in subsequent filings.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Revenue growth and profitability trends once trading data is available.
• Director’s ongoing financial support or injection of capital if needed.
• Any increase in current liabilities or delays in creditor payments evidencing cash flow strain.
• Market conditions impacting the retail sale via stalls and markets (SIC 47810) especially post-pandemic recovery.